Donald Trump offers his take on China's 'Black Monday' – he knew it could happen all along

Mogul: 'I'm the one that says you better start un-coupling from China'

Click to follow
The Independent US

It didn’t take long for Donald Trump to give his opinion on the China’s ‘Black Monday’ – and tell everyone he’d been warning them all along it could happen.

"I've been talking about China for years,” he said. “Because China's going bad it's going to bring us down, too, because we're so heavily coupled with China," the real-estate mogul told Fox News. "I'm the one that says you better start un-coupling from China because China's got problems."

Trump also pointed a finger at hedge funds and said that if he were elected president in 2016 he would raise taxes on the wealthy and specifically target those working in high-stakes finance.

The rhetoric was reminiscent of the final months of the 2008 presidential election, when Republican nominee John McCain suspended his campaign in reaction to the massive financial crisis.

 

The lack of new measures from Beijing to support Chinese stocks following an 11 percent drop last week sparked a free-fall in global equities and a selloff in oil and commodities. Wall Street's rout continued on Monday, with the Dow Jones Index down more than 1,000 points, or about six percent, shortly after the open.

Following Trump on Fox News, fellow Republican candidate and former Hewlett-Packard Co chief executive Carly Fiorina said she had expected a market correction for "some time."

China-EPA.jpg
The Hang Seng Index plunged by 1,158.05 points, or 5.17 per cent, after a new wave of panic-selling hit the mainland Chinese stock market (EPA)

"The market has been way too high, given the fundamentals. Our economy is not particularly strong - 2 percent growth is very lackluster. China's economy has been slowing down for some time. Europe's economy is in trouble," she said.

But Fiorina mostly blamed the Federal Reserve.

"I think the stock market has hit record highs over and over again because the Federal Reserve has ensured, through its easy-money policy, that the stock market is the only place you can earn a return," she said. "I think this is warranted honestly."

New Jersey Governor Chris Christie, also a Republican candidate, told Fox News the government under President Barack Obama had borrowed too much and with China a major buyer of U.S. debt a market correction in the Asian superpower is "going to have an even greater effect because this president doesn't know how to say no to spending."

"What you need to do in the Oval Office is rein this government in. Stop running up so much debt," he said.

Comments